The uncertain future of Indian domestic gas production has cascading effects on the overall role of gas in the country´s energy sector. The impacts have already been felt in the power sector where the PLF of gas-fired plants during the year averaged only 18.64% in May last year and more recently at 23.73% (May 2016) due to unavailability of gas.

Environmental considerations weighed heavily in favour of natural gas when the government wanted to promote use of gas in power generation, over two decades ago. Particularly so in India, where available coal quality is very low. Despite natural gas being the clean fuel, coal remains the staple feedstock of power generation in India for various reasons.

Both GAIL and NTPC are to pump Rs.500 crore each into the separate company formed to take care of the liquefied natural gas (LNG) business of the former Ratnagiri Gas and Power Pvt Ltd (RGPPL), while a consortium of banks will invest another Rs.1,000 crore.

In the meeting, we have put forth our various concerns right from evacuation infrastructure, how to bring down the cost of power generation, rationalise the cost for distribution infrastructure to lowering the tariffs for industrial units in Maharashtra.

To help the cash-strapped Ratnagiri Gas and Power Pvt. Ltd (RGPPL) tide over the tough times, state-run NTPC Ltd, which owns 32.86 per cent stake in the utility, has proposed that electricity generated from the Dabhol power plant be made a part of the Telangana package.

GAIL India is considering renting out the 1,967 MW unit to private electricity generators after being forced to shut the Dabhol power plant due to a natural gas shortage. Ratnagiri Gas & Power Pvt Ltd (RGPPL) shut the Dabhol power plant in March after gas supplies from Reliance Industries' KG-D6 fields was stopped.

GAIL India is considering renting out the 1,967 MW unit to private electricity generators after being forced to shut the Dabhol power plant due to a natural gas shortage. Ratnagiri Gas & Power Pvt Ltd (RGPPL) shut the Dabhol power plant in March after gas supplies from Reliance Industries' KG-D6 fields was stopped.